Developing Effective Teams

286
Institutions have accepted or given pre-approval for credit transfer.

* The American Council on Education's College Credit Recommendation Service (ACE Credit®) has evaluated and recommended college credit for 26 of Sophia’s online courses. Many different colleges and universities consider ACE CREDIT recommendations in determining the applicability to their course and degree programs.

Video Chapters

Video Transcription

Hello, and welcome to this tutorial on Markets in Marketing. Now, as always these tutorials, please feel free to fast forward, pause, or rewind as many times as you need in order to get the most out of the time that you're going to spend here.

So let me ask you a question to start off. Where does marketing exist?

And we talked a little about what marketing is in the last tutorial. So where do you think marketing happens? Is it strictly on TV? Maybe football games. Or maybe is it just print and newspaper ads?

Well, it's a much bigger world from that as we're going to see when we get into the tutorial. What we're going to cover here is going to be those markets where marketing exists. The markets in marketing. And we're also to look at the marketing of services.

Now, the key terms for this lesson are going to be services, consumer goods, and industrial goods. So let's get started with markets. Well, what's a market?

Well, a market is anyone-- a group that's wanting or needing something that you're offering. And they also have the ability to buy it. Now, basically markets can be broken down into two broad groups.

The first one is the consumer market. And these are things that are sold directly to you and I, the end consumer. Those are also called consumer goods.

The other is business markets, where businesses sell to other businesses. And we're going to take a closer look at each one of these things.

Now, the first one we're going to look at is B2C, or Business to Consumer marketing. And what this deals with is consumer products. Those products that are intended for the end user. Where is that product finally destined to end up?

The soda drink in your hand, or the computer that you're watching, or the piece of software that's running your operating system. That end user is the person that finally buys the product, consumes it, and finally use it. It's who the consumer product is designed for.

So consumer goods we're going to define as goods that are purchased by individual end users and not the producer. Not the people who make the product for you to buy.

The next one is B2B, or Business to Business. Here we're dealing with expense items and capital items.

Now, expense items are those things that go into making a product. For instance, the cloth that goes into making a shirt. Capital items are those items, those pieces of equipment, that are used to actually make that product. Like the sewing machine that sews the bolts of cloth together to make you the shirt.

Now, business to business marketing can deal with the same product category as business to business marketing. For instance, magazines. A trade publication, like Women's Wear Daily is going to focus primarily on the business of those people making the shirts. Whereas, Fashion magazine or Vogue would be designed specifically for the consumer of that product.

These are industrial goods. So business to business deals with expense in capital items that are industrial goods. That aren't necessarily meant for the end consumer. So let's go ahead and define industrial goods.

Industrial goods are goods that are purchased to be used in manufacturing and construction. Those are the things that go into making the products that you want and I buy. And those are the two broad categories that we're going to deal with with marketing.

Now if you remember from the first tutorial, services are something else that marketing can market, not just consumer products. And a service is defined as a mercantile activity where the consumer does not receive ownership of that thing bought.

For instance, you don't receive ownership of the pool person cleaning the pool for you. You don't receive ownership of the oil change that is performed at the mechanic shop.

Now, the way you market services is a little bit different than marketing consumer goods. And we've seen a dramatic increase in marketing of services and services offered in the last 30 years.

In fact, the US economy is moving more toward a service-oriented economy than a consumer good-producing economy. For instance, getting your hair cut or your law mowed. You see more general contractors and people providing service than you did before.

This can be, like I said before, the mechanic that helps fix your car. More and more what we're seeing is customer service-focused marketing. Customer service-focused business.

Now, this is a benefit to the consumer because, well, for one thing, the consumer doesn't have to take time out of their day to do this thing that they need to do, like getting your oil changed. It also lets the consumer take advantage of the expertise of the provider.

For instance, riding in a taxicab. The person driving a taxicab knows a strange city where you're traveling much better than you do. There's also an emphasis on packages and other ways for that consumer to continue to use that product.

Hey, if you pay me a certain flat fee now, I'll let you use my service for four other times somewhere within the next four or five years. For instance, you'll see amusement parks sell summer discount packages where you buy one-- you pay one flat fee and you get to come back as many times as you like. So that gets you to come back into the door more often.

And in marketing services, what you see is a focus on the relationship between the provider of that service and the end user of that service. And again, they're going to emphasize things like, hey, we can save you time. Or we're a lot better at this. We can get this job done quickly and efficiently and it done right the first time. So the main difference here between marketing services and marketing goods are if you're marketing a good, you're going to focus on the consumer experience in using that product or owning that product. Much better graphics than your old computer. It runs 10 times faster. Or, the car corners on a dime. Or, it rides like a pillow floating in the clouds.

Whereas, marketing with a service, what you're going to be focusing on primarily is the utility of that service. How does it benefit me in ways where I'll be willing to pay for it, but not necessarily own it? So what do we look at?

We looked at two broad categories of marketing for one. Those markets that exist in marketing. Those markets would be the consumer market and the business market. We also looked at the marketing of services. How a service is marketed in ways that it might differ from how you would market or let people know about the product that you'd like them to buy.

As always, I'm happy you spent some time with me. It's good to have you back, and you guys have a great day.

Terms to Know

Consumer goods

Goods that are purchased by individual end user and not the producer.

Industrial goods

Goods that are purchased to be used in manufacturing and construction.

Services

Mercantile activity where the consumer does not receive ownership of the thing bought.